Joe Biden Unveils New Economic Plan, $2tn in Infrastructure
Joe Biden announces a $2tn infrastructure plan to boost the economy. The plan would be funded by an increase in corporate tax rate.
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- Joe Biden announces a $2tn infrastructure plan to boost economic growth and competitiveness
- The plan would be funded by an increase in corporate tax rate from 21% to 28%
On Wednesday, as the first quarter of the year drew to a close, US President Joe Biden officially announced a new government spending package aimed to provide a substantial boost to infrastructure all around the states. The plan with a price tag of $2tn promises to advance Mr Biden’s “Build Back Better” campaign by focusing on fixing roads, bridges, airports, and also providing funding for clean energy projects and overall strengthening of the world’s largest economy.
“It’s going to create the strongest most resilient, innovative economy in the world. It’s not a plan that tinkers around the edges,” said the Democratic President. “It’s a once-in-a-generation investment in America,” he added.
The plan, called the American Jobs Plan, would be funded by higher corporate taxes which could bring as much as $695bn of revenue over the next 10 years. In order to do that, Joe Biden wants to raise the corporate tax rate from 21% to 28%. Raising the corporate tax rate “will help fund critical investments in infrastructure, clean energy, R&D, and more to maintain the competitiveness of the United States and grow the economy.”
If approved, the hefty package would direct $612bn to modernize transportation infrastructure and electric vehicles. Green housing, schools, power and water upgrades will cost $561bn. $480bn would be allocated to R&D and manufacturing subsidies, and $400bn will help care for the ageing and people with disabilities. $100bn will be spent on expanding broadband internet access.
“Here’s the truth: We all will do better when we all do well,” Mr Biden said during his speech in Pittsburgh, the place where he started his presidential campaign. “It’s time to build our economy from the bottom up and from the middle up, not the top down.”
Hefty Investments Mark Biden’s Administration Start
The new measure came just weeks after the approval of the $1.9tn stimulus bill in early March that is now being sent out to businesses and individuals across the states. The new proposal is the first of a two-part economic plan that Joe Biden expects to pass through Congress in the second quarter. While the current $2tn proposal is centered on infrastructure, the second part will aim to provide better child care, healthcare and education. It is expected to be announced in April and to cost between $1tn and $2tn that would be ploughed into the economy over the next 10 years.
The investment, which requires congressional approval, would cost around $2.3tn over eight years and they would have to be paid for over 15 years. Critics of the plan argue that the higher corporate tax will hurt US competitiveness. Supporters, however, cheered the proposal for it will modernize largely abandoned public goods and infrastructure that has been dragging the economy down.
“The American Jobs Plan will create millions of good-paying jobs, grow our economy, make us more competitive, promote our national security interests, and put us in a position to win the global competition with China,” Joe Biden wrote on Twitter alongside a video of his speech.